What is the present value of the following cash flow stream at a rate of 6.25%?
A) $411.57
B) $433.23
C) $456.03
D) $480.03
E) $505.30

Question

Quizplus · Accepted Answer

I/YR = 6.25%
 $\begin{array}{lccccc} 
& 0 & 1 & 2 & 3 & 4 \
\hline \text { CFs: } & \$ 0 & \$ 75 & \$ 225 & \$ 0 & \$ 300 \
\text { PV of CFs: } & \$ 0 & \$ 71 & \$ 199 & \$ 0 & \$ 235
\end{array}$ 
PV = $505.30 PV = $505.30 You can find the individual PVs and sum them. Alternately, you can automate the process using Excel or a calculator, by inputting the data into the cash flow register and pressing the NPV key.

What Is the Present Value of the Following Cash Flow